Data center interconnect refers to a technique used to connect and enable networking between two or more different data centers. Data center interconnect is usually done in an enterprise environment to achieve IT and business objectives. One of the advantages of this technique is it allows different data centers to share resources, pass workloads, and work together. Such a technique can also be utilized to pool resources of multiple data centers to meet scalability goals.
There are many factors driving the global data center interconnect market. The growing focus on reducing high bandwidth and power consumption in data centers is expected to be a major driver of the market. Moreover, increasing demand for disaster recovery and data backup services to ensure business continuity is anticipated to emerge as a driver of growth. Also, the migration toward cloud-based services has increased the demand for data centers which is expected to boost the growth of the data center interconnect market.
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There are, however, some factors that are restraining the market’s growth. The high initial investment associated with data centers is expected to be one of the major restraints of the market. The distance between data centers reduces their efficiency and is expected to surface as a restraint to the growth of the market.
The global data center interconnect market can be segmented on the basis of type, application, end user, and geography. On the basis of type, the market can be segmented into product, software, and services. The product sub-segment can be further divided into packet switching networking, converged packet optical, and packet optical networking/packet optical transport. Additionally, services can be further divided into managed and professional services. Professional services can be further bifurcated into consulting & integration, and training, support & maintenance.
Based on application, the global data center interconnect market can be sub-segmented into workload (VM) and data (storage) mobility, shared data and resources/server high-availability clusters (geoclustering), and real-time disaster recovery and business continuity. On the basis of end user, the total market can be segmented into CSPs (communications service providers), CNPs/ICPs (carrier neutral co-location providers/internet content providers), government, and enterprises. Enterprises can be further divided into banking and finance, utility and power, healthcare, media and entertainment, retail and e-commerce and others (transportation, education, manufacturing, and insurance).
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Based on geography, the market can be segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is expected to hold a major share of the total market owing to the growing usage of data center interconnect devices in industrial, commercial, and military & defense verticals. The market in the North America region is also expected to expand at a significant rate, driven by countries such as the U.S. and their increasing adoption of especially cooled data center Interconnect cameras from the scientific research vertical, and increased defense expenditure. In terms of market share, North America is expected to be followed by Europe and Asia Pacific. Middle East & Africa, and South America are expected to hold a minor share of the total market.
Major players in the global data center interconnect market are ADVA Optical Networking SE, Brocade Communications Systems Inc., Ciena Corporation, Cisco Systems Inc., Cologix Inc., Colt Technology Services Group Ltd., Coresite Realty Corporation, Coriant GmbH, Digital Realty Trust Inc., Ekinops S.A., Extreme Networks Inc., Fiber Mountain Inc., Fujitsu Ltd., Huawei Technologies Co. Ltd., Infinera Corporation, Innovium Inc., Juniper Networks Inc. and MRV Communications Inc. Other prominent market players include Megaport Limited, Nokia Corporation, Pluribus Networks Inc., Ranovus Inc., Viawest Inc., XKL LLC, and ZTE Corporation.
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